Objective vs. Goals

What is goal setting?

Understanding the Differences: Goals, Objectives, and OKRs Explained

"Goals," "Objectives," and "OKRs" are distinct yet often confused terms in a company's strategic framework. "Goals" are long-term aspirations, while "Objectives" are specific, measurable steps derived from goals. Understanding the difference between goals and objectives is crucial; a goal sets the long-term vision, while objectives help to take specific actions toward achieving the desired outcome. In return, "OKRs" (Objectives and Key Results) add quantifiable outcomes to objectives. OKRs are a popular tool used to set goals that are ambitious and have measurable results. They help organizations align and track the progress of their overall goals. Setting company goals and objectives involves defining clear, achievable targets that guide all levels of the organization, aligning individual efforts with the company's overarching mission and strategic objectives.

Aligning Employee Actions with Specific Objectives

To establish clarity, your strategic architecture links high-level business goals and strategies to employee actions, ensuring alignment and focus throughout the organization. This "pyramid" in goal setting definition enhances transparency, accountability, and collaboration, driving the company toward its mission.

What are yearly OKRs? What are annual OKRs?

"OKRs" (Objectives and Key Results) offer a structured approach, emphasizing the quantifiable outcomes necessary to meet longer-term goals. OKR goals need to have a certain cadence to be set, reviewed, reflected, and set again for the next cadence. A typical rhythm for OKRs is a quarter. But you can also add and formulate your yearly goals in the format of OKRs, meaning a few objectives with a few distinct, quantifiable key results. As the format and writing style are like an OKR, these are called yearly or annual OKRs. The format of your yearly goals is optional - most importantly, they are easy to follow and understand, measurable, and concrete.

Company goals vs. team goals

Company goals are overarching objectives that define the direction and aspirations of the entire organization. These goals encapsulate the broader vision, mission, and strategic priorities that guide the company's growth and success. They often span longer timeframes and are typically set at the executive or leadership level. Company goals serve as a unifying force, aligning different departments and teams toward a common purpose, and they reflect the organization's strategic focus, such as revenue targets, market expansion, or product innovation.


Team goals, in contrast, are more specific and tailored to individual departments or functional groups within the company. These goals are designed to achieve a particular outcome within a defined period. Team goals break down the larger company objectives into actionable and measurable steps that are directly relevant to the team's responsibilities. They provide teams with a clear sense of direction, priorities, and performance expectations. Unlike company goals, team goals are often shorter-term and can vary based on the unique functions and contributions of each team.

What are OKR goals?

OKRs stand for Objectives and Key Results.


Objectives stand for a few priorities or themes that give direction. Your key objectives answer the question, "Where do we want to go?". Typically, an organization should have no more than 3 or 4 key objectives to maintain clarity and purpose. Objectives are descriptive and provide context; they are not measurable.


Key Results stand for measurable results and describe success. You should have 3 or 4 per Objective. The sum of your Key Results answers the question, "Do we know that we have arrived?". Key Results are ambitious outcomes that are used to track the achievement of measurable objectives, often based on informed assumptions or targets.


Activities, Actions and Initiatives stand for all the things we are doing in order to reach the OKRs. These are tasks, to-dos, and Sprints and are planned or documented using different sorts of tools and methods. They answer the question, "What are we doing to get there?" within the broader context of setting goals and objectives.

OKRs vs. Goals

While goals provide a broad, long-term vision, OKRs break down this vision into actionable, measurable steps, offering a more tactical and immediate roadmap for achieving these goals.

What are Moals?

Moals are just fancy word creations and are not used in the international context of the OKR methodology. It is a fantasy word composition referring to long-term goals, such as yearly company goals. So better just call it yearly goals or yearly Objectives and you will be more aligned. 

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About the author

Hannes Albrecht
A true pioneer in OKRs. Keynote speaker for OKRs, goals and result-based leadership. Specialised in enabling C-Levels and Management Teams to use OKRs successfully in order to execute strategy with radical focus. Experienced Manager with international background in various industries. Based near munich, Germany.

more info


Hannes Albrecht

Phone: +491729733253

eMail: hello@how-to-okr.com

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